Question

Given that Jacob's Chocolates Company had beginning retained earnings of $4,000; net income during the period of $10,000; and dividends of $300 calculate the ending balance in the retained earnings account.
a. $14,300
b. $6,300
c. $13,700

Answer 1

Answer:

C. $13,700

Explanation:

Given that;

Beginning retained earnings = $4,000

Net income during the period = $10,000

Dividends = $300

Computation of Ending balance in the retained earnings account

= Beginning retained earnings + Net income during the period - Dividends

= $4,000 + $10,000 - $300

= $13,700

Therefore, the ending balance in the retained earnings account is $13,700